What is different about buying a new-build home?

Reservation fees, off-plan contracts, long-stop dates, the warranty, the snagging window and the consumer code. What a new-build purchase does differently and where buyers get caught.

Difficulty: intermediate
Time: 14 min
Read: 5 min
Safety: caution

Short answer

You reserve a plot with a fee, exchange within a short deadline set by the developer, and complete on notice when the home is finished rather than on a fixed date. A structural warranty covers defined defects for a set number of years, not everything. Inspect and snag before completion, use your own conveyancer rather than the developer's recommendation, and check your mortgage offer's expiry against the likely completion window.

The commercial pressure runs the other way from a second-hand purchase. The developer wants exchange fast — often within weeks of reservation — and completion at their convenience once the plot is ready. That asymmetry is legitimate but it means the buyer's protections have to be built in deliberately: an independent conveyancer, a proper reading of the completion mechanism, and an inspection before you take the keys rather than after.

Safety

New-build contracts commonly exchange on a long-stop completion date rather than a fixed one, and reservation fees are usually non-refundable. Mortgage offers have expiry dates that can fall before a delayed plot is finished. Read the contract's completion mechanism and your mortgage offer's expiry together before you exchange.

Step by step

Read what the reservation fee buys.It takes the plot off the market for a defined period. It is usually non-refundable, or refundable only in narrow circumstances, and it is deducted from the price at completion. Get the reservation agreement and read the refund terms before paying.
Use your own conveyancer.Developers offer a panel firm, often with an incentive. You are entitled to choose. A conveyancer who acts for the developer's buyers regularly may be efficient, but you want someone whose only interest is yours when the completion mechanism is being explained.
Understand the exchange deadline.Developers commonly require exchange within a short window after reservation. That is a real constraint on your mortgage and your own sale. If you have a property to sell, be honest about the timing before reserving.
Read the completion mechanism, not the sales brochure.Off-plan contracts usually complete on notice — the developer serves notice when the home is legally complete and you must complete a short number of days later — with a long-stop date beyond which you may withdraw. Know both figures.
Check your mortgage offer's shelf life.Offers expire, and new-build delays are routine. Ask the lender how long the offer runs, whether they will extend for new build, and what happens if the plot slips past it. Some lenders offer longer validity specifically for new build.
Know what the warranty covers.A structural warranty from a recognised provider typically gives a short initial period during which the builder must fix defects, followed by a longer structural cover period. It is not a maintenance contract and it does not cover wear, decoration or anything you damage.
Use the consumer code that applies.New homes sold by registered developers are covered by a consumer code setting standards for marketing, reservation, contracts and complaints, with a dispute resolution route. Ask which code and which warranty provider apply to your plot, and keep the documents.
Snag before you complete if you can.Ask for a pre-completion inspection, take your time, and record everything with photographs. Some codes give a defined opportunity to inspect before completion. Whatever the arrangement, a written snagging list handed over at completion is far stronger than one raised weeks later.
Ask about the estate charge.Many new estates have unadopted roads and communal areas managed by a company that charges owners an annual estate rentcharge or management fee, on top of council tax or rates and regardless of tenure. Ask what it is, who sets it, and how it can rise.
Check the tenure and any ground rent.Ask whether the plot is freehold or leasehold and, if leasehold, what the term and the ground rent provisions are. Reform has changed what can be charged on new leases, so ask specifically what applies to this plot.

Tips

Ask which warranty provider and which consumer code apply, and get both documents at reservation. They set your rights and most buyers never see them.
Photograph everything at the pre-completion inspection, including behind appliances and in the loft. Dated photographs settle later arguments.
Ask what the estate management charge is now and what it was last year. The trend matters more than the figure.

Common mistakes

Using the developer's recommended conveyancer for the incentive — The completion mechanism, the long-stop date and the estate charge are exactly the points where you want a conveyancer with no relationship to the seller.
Completing before inspecting — Once you have completed you are a customer chasing a warranty claim. Before completion you are a buyer whose money the developer still needs.

If it doesn't work

The developer wants to complete in ten days and your mortgage has expired

Cause: A plot delayed past the mortgage offer's validity — Fix: Tell your broker and lender as soon as the delay is known, not when notice is served. Re-offers take time, and the notice period in the contract does not pause for it.

Snags are not being fixed after you moved in

Cause: Site teams move on to the next phase — Fix: Put the list in writing with photographs and dates, escalate to the customer care team in writing, then use the consumer code's dispute service. Keep everything within the warranty's initial defects period.

An estate management charge appeared that nobody mentioned

Cause: Unadopted roads and communal land managed privately — Fix: Ask your conveyancer where it is documented in the transfer, what the mechanism for increases is, and whether the roads are due to be adopted. Raise it before exchange, because it binds the property.

Questions people ask

Do I need a survey on a new build?

A traditional condition survey adds less than on an older house, but an independent professional snagging inspection before completion is widely worth having. The warranty covers defined defects; a snagging list gets the finish put right while the developer is still on site.

What if the home is not finished on time?

Off-plan contracts usually complete on notice, so a delay simply means the notice comes later. Your protection is the long-stop date, after which you can normally withdraw and recover your deposit. Check what your contract says and diarise the date.

Are the incentives worth taking?

Deposit contributions, stamp duty paid, upgrades and part-exchange all have a cash value and all are ultimately reflected in the price. Ask what the price would be without the incentive, and tell your lender about any incentive — they take it into account.

Who do I complain to if the developer will not fix things?

The developer's own complaints process first, then the consumer code's dispute resolution service or the new homes ombudsman arrangements that apply to your purchase, and separately the warranty provider for anything within warranty cover.